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An economic network in Nonth America

Author

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  • AROCHE REYES, FIDEL
  • MARQUEZ MENDOZA, MARCO ANTONIO

Abstract

Economic structures can be studied as networks of industries linked through flows of commodities that - in turn - the consuming sectors use as inputs. The Input-Output (IO) model is a suitable framework for analysing those structures, because its main target is the study of interdependence between sectors. In this paper we use a North American multi-region IO table in order to identify an economic regional network that results from a subset of the links between sectors in the countries involved. Those are defined by the exchange of goods between industries. Further, a density measure is used as an indicator of the network complexity, explained by the integration level and shape between those economies. Our results show that the US is by far the most integrated economy in North America; it also determines the shape of the network structure. In contrast, Canada and Mexico maintain scarce direct relationships.

Suggested Citation

  • Aroche Reyes, Fidel & Marquez Mendoza, Marco Antonio, 2012. "An economic network in Nonth America," MPRA Paper 61391, University Library of Munich, Germany, revised Nov 2014.
    • Handle: RePEc:pra:mprapa:61391
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    References listed on IDEAS

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    1. Louis de Mesnard, 1998. "On boolean topological methods of structural analysis," Working Papers hal-01527137, HAL.
    2. Campbell, John, 1975. "Application of graph theoretic analysis to interindustry relationships : The example of Washington state," Regional Science and Urban Economics, Elsevier, vol. 5(1), pages 91-106, February.
    3. Miller,Ronald E. & Blair,Peter D., 2009. "Input-Output Analysis," Cambridge Books, Cambridge University Press, number 9780521517133.
    4. Miller,Ronald E. & Blair,Peter D., 2009. "Input-Output Analysis," Cambridge Books, Cambridge University Press, number 9780521739023.
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    Cited by:

    1. Fernando DePaolis & Phil Murphy & M. Clara DePaolis Kaluza, 2020. "Identifying Key Sectors in the Regional Economy: A Network Analysis Approach Using Input-Output Data," Papers 2005.11285, arXiv.org, revised Sep 2022.

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    More about this item

    Keywords

    Economic structure; economic network; Input-Output model; North America;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • F15 - International Economics - - Trade - - - Economic Integration
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada

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